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Consequences Of Banning Reverse Payments

Law360 (March 9, 2009, 12:00 AM EDT) -- A bipartisan group of Senators recently introduced a bill called “The Preserve Access to Affordable Generics Act” (S. 369).

The act seeks to make illegal any settlement of patent litigation which involves payments by a brand name drug maker to a generic drug manufacturer in exchange for the generic’s agreement to delay market entry.

These agreements (often referred to as “pay for delay” or “reverse payment” settlements) would be illegal without regard to the strength of the patent, which is the subject of the litigation, and...
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